U.S. FTC Warns Law Firms Over DEI Hiring Practices

The U.S. Federal Trade Commission said it has sent letters to 42 law firms warning that certain diversity, equity, and inclusion (DEI) hiring practices may raise concerns under antitrust and unfair competition laws. The notices were issued on Friday and addressed to several large law firms across the country.

The FTC said the firms participated in a programme overseen by consultancy Diversity Lab, which promotes gender and race representation in leadership pipelines. The action follows steps by President Donald Trump’s administration to end DEI-related programmes in government, while some private firms have reduced similar initiatives. Among the firms named were Paul Weiss, WilmerHale, and Perkins Coie, which were previously targeted by executive orders over hiring practices. Paul Weiss, Skadden Arps, and Latham & Watkins later reached agreements with the White House. WilmerHale and Perkins Coie challenged the orders in court and succeeded.

FTC Chairman Andrew Ferguson said coordination to meet DEI metrics could affect hiring, pay, and promotions. The White House referred questions to the FTC.